California Assignment Order Laws

I am not a lawyer, I am a judgment broker. This
article is my opinion, and not legal advice, based on
my experience in
California, and laws vary in each state. If you ever
need any legal advice
or a strategy to use, please contact a lawyer.

This article summarizes and comments on the most common
California civil
laws concerning assignment orders.

The text of the California laws mentioned in this
article have not been
included, because they are lengthy and
can be found with a web search.
It is very
important to know the laws for your state.

California has two sets of civil laws - one set covers
the general rights
and obligations, for the people and entities in
California, and they are
called the California Civil Codes.

The other set of California civil laws are the
California Codes Of Civil
Procedures (CCP), that cover details about courts,
procedures, and the
implementation of the civil laws in California.

These are the California laws that directly address
assignment orders:

CCP 708.510 - This is the most important law about
assignment orders, it
lists the types of incomes that can be reached, and
what must be included
in assignment orders. This law says the judgment debtor
can be served by
mail.

This law does not specify how third-parties that owe
the judgment debtor
may be served. One option is to have all parties served
personally. That
way, if a party does not comply, you can ask the court
to issue contempt
of court penalties, or you might be able to start a
lawsuit against them.

Also, the road to a contempt ruling is a game of
degrees
measured in several milestones along the way. You
need to build a strong case for contempt over time if
you
have any hopes of prevailing.
Your first big hurdle is to prove that the person
alleged to
be in contempt had actual notice of a court order, that
the
court order clearly directed the person to do or
refrain them
from doing something, that is was within the power of
that
person to comply with the court order, and that they
willfully disobeyed the court order.
Civil contempt is a quasi-criminal
proceeding, subject to a higher burden of proof than in
ordinary civil proceedings (beyond a reasonable doubt
versus a
preponderance of evidence). In small claims court,
judges may
not be interested in contempt, and Pro Tems and
commissioners
almost certainly will not be interested in deciding a
contempt ruling.

To save money, perhaps have the parties served by mail
first. When the
parties (you hope will be sending the monies)
are served, without giving
legal advice,
politely make sure they understand what the order says.
If they do not
respond, politely contact them, then have them
personally served if
necessary.

CCP 708.520 - This law covers optional restraining
orders that must be
personally served on the judgment debtor, warning them
not to play any
shenanigans, and to obey the court's order.

CCP 708.530 - This law refers one to Civil Code 955.1,
which covers topics
such as the details and priorities of payments. 708.530
also states that
assignment orders may be recorded as a lien.

CCP 708.540 - This law is common sense, the entity
paying your debtor is
not obligated to pay you, until after they are served
notice of the
assignment order.

CCP 708.550 - This law explains how a judgment debtor
could claim that the
income stream being assigned is exempt, which means the
creditor will be
served for another hearing to decide the matter.

CCP 708.560 - This law allows assignment orders to be
amended or canceled
by either party, and requires service on the other
party, and another
court hearing, which can be ex-parte, following the
guidelines of
CRC 3.1200.

These are some of the other California laws that affect
assignment orders:

CCPs 706.010 and 706.011 - These are the wage
garnishment laws, that
regulate how earnings may be levied to pay a judgment
debt, and has legal
definitions of the involved parties.

While one could claim that assignment orders do not
have to follow CCPs
706.010 and 706.011, most judges prefer to approve
orders that comply with
the spirit of CCPs 706.010 and 706.011.

CCP 708.610 - This law allows a receiver to be
appointed if necessary.

California Civil Code Section 955.1 - This law defines
how levies and
third-parties have to follow commercial codes. Also,
how third-parties
must respond, and how third-parties cannot easily avoid
paying what is
owed to the judgment debtor, unless they are involved
with a public
utility, which is rare.

Should you send a notice to the judgment debtor? Most
do because of law 954(c):

(c) The filing of an acknowledgment of assignment of
the judgment
with the court under Section 673 of the Code of Civil
Procedure is
not, of itself, notice to the judgment debtor so as to
invalidate any
payments made by the judgment debtor that would
otherwise be applied
to the satisfaction of the judgment.

Notice to the debtor of an
assignment is not necessary to render the
assignment binding between the assignor and the
assignee. However, a
debtor is not bound by the transaction until he/she
receives notice of
the assignment. Thus, in order to charge the debtor
with the duty of
payment to the assignee, a debtor shall be provided
with sufficient
notice of assignment and if the debtor pays the
assignor or the
assignor's judgment creditor before receiving the
notice, the debtor
shall be discharged from liability.